How Grange Resources Boosted Production and Slashed Costs in Q3 2025
Grange Resources reported a robust Q3 2025 with increased iron ore concentrate production, improved pellet sales, and a notable rise in realised product pricing, all while maintaining an excellent safety record.
- Concentrate production up to 583kt, pellet sales increased to 591kt
- Unit cash operating costs fell to A$163.37/t from A$182.32/t
- Average realised product price rose nearly 24% to A$203.72/t
- Cash reserves strengthened to A$272.76 million
- North Pit Underground project financing advances with technical due diligence
Strong Operational Momentum
Grange Resources Limited has delivered a solid performance in the third quarter of 2025, with its Savage River operations in Tasmania showing clear signs of operational strength. Concentrate production rose to 583,490 tonnes, up from 519,849 tonnes in the previous quarter, while pellet sales also increased modestly to 591,179 tonnes. This uptick was supported by the completion of a waste stripping campaign at Centre Pit, enabling access to higher-grade ore and boosting mill throughput.
The company’s focus on operational efficiency is evident in the reduction of unit cash operating costs (C1 costs) to A$163.37 per tonne, down from A$182.32 per tonne in the June quarter. This improvement was driven primarily by higher production volumes and the completion of costly waste removal activities, which typically weigh on short-term costs.
Pricing and Financial Strength
Grange also benefited from a favourable market environment, achieving a 23.98% increase in its average realised sales price to A$203.72 per tonne (US$133.44/t) FOB Port Latta. This price uplift significantly bolstered revenue, contributing to a healthy cash and liquid investment position of A$272.76 million, up from A$239.37 million at the end of the previous quarter.
Such financial resilience provides Grange with a strong platform to continue investing in growth and sustaining operations. During the quarter, the company invested approximately A$10.1 million in capital projects, including major haul truck power train rebuilds and infrastructure upgrades at the pellet plant.
Progress on Strategic Projects
Looking ahead, Grange is advancing the financing process for its North Pit Underground development, with independent technical due diligence currently underway. This project is critical for extending the mine life and maintaining production levels beyond the current open pit operations.
Meanwhile, the Southdown Magnetite Project in Western Australia remains under strategic evaluation. The company continues to engage potential partners to unlock the value of this large-scale development opportunity, which could potentially double Grange’s production capacity once operational.
Safety and Operational Discipline
Notably, Grange’s Savage River operations have maintained an outstanding safety record, achieving over 875 consecutive days without a Lost Time Injury. This milestone underscores the company’s commitment to safe and responsible mining practices, which is essential for sustainable long-term operations.
CEO Weidong Wang highlighted that the team remains on track to meet full-year production and cost targets, reflecting disciplined execution amid a dynamic market backdrop.
Bottom Line?
Grange’s Q3 momentum sets a promising stage, but the success of North Pit financing and Southdown partnerships will be pivotal for future growth.
Questions in the middle?
- What is the timeline and structure expected for the North Pit Underground project financing?
- How will Grange balance capital expenditure between sustaining operations and new project development?
- What strategic partners are being considered for the Southdown Magnetite Project, and what terms might be involved?
